5 Cloud Software Stocks with Strong Growth Potential

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1. Microsoft Corporation (NASDAQ: MSFT)

Number of Hedge Fund Holders: 238

Year-on-Year Revenue Growth: 17.53%

Microsoft Corporation (NASDAQ: MSFT) is ranked first on our list of 10 cloud software stocks with strong growth potential. The firm operates from Washington and provides software services for a host of applications. 

On August 20, investment advisory UBS maintained a Buy rating on Microsoft Corporation (NASDAQ: MSFT) stock and raised the price target to $350 from $325. Karl Keirstead, an analyst at the firm issued the ratings update. 

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ: MSFT)  with 24.8 million shares worth more than $6.7 billion.

In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ: MSFT) was one of them. Here is what the fund said:

“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”

You can also take a peek at 10 Companies that Benefit From Crypto Mining and 12 Best Artificial Intelligence Stocks To Invest In Right Now.

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